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Kroger (KR) ended the recent trading session at $61.64, demonstrating a +0.98% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.51% loss on the day. On the other hand, the Dow registered a loss of 0.75%, and the technology-centric Nasdaq decreased by 0.28%.
Coming into today, shares of the supermarket chain had lost 1.45% in the past month. In that same time, the Retail-Wholesale sector gained 7.41%, while the S&P 500 gained 2.87%.
The investment community will be paying close attention to the earnings performance of Kroger in its upcoming release. It is anticipated that the company will report an EPS of $1.10, marking a 17.91% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $34.62 billion, down 6.6% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.44 per share and revenue of $147.52 billion. These totals would mark changes of -6.72% and -1.68%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Kroger. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.14% rise in the Zacks Consensus EPS estimate. As of now, Kroger holds a Zacks Rank of #3 (Hold).
In terms of valuation, Kroger is currently trading at a Forward P/E ratio of 13.73. This valuation marks a discount compared to its industry's average Forward P/E of 13.76.
Investors should also note that KR has a PEG ratio of 2.87 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Supermarkets industry currently had an average PEG ratio of 2.31 as of yesterday's close.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 214, finds itself in the bottom 15% echelons of all 250+ industries.